Merck to Pay Pennsylvania $8.5 Million in Vioxx Case

Feb. 24--Merck & Co. Inc., will pay $8.5 million to settle
allegations by the Commonwealth of Pennsylvania that the drugmaker
inappropriately marketed its controversial painkiller Vioxx, which
was withdrawn from the market in 2004.

State Attorney General Kathleen G. Kane announced that, after
attorneys' fees are paid, $6.9 million will go to the PACE program,
which helps low-income seniors buy prescription medicine.

Vioxx was first approved by the U.S. Food and Drug
Administration in 1999 but was pulled from the market in 2004 amid
reports that it was causing health problems, including heart
attacks and strokes.

In settling the litigation, Merck did not admit any liability or
wrongdoing.

"We believe that Merck acted responsibly and in good faith in
connection with the matters at issue in this litigation, including
activities concerning the safety profile of Vioxx," Bruce N.
Kuhlik, executive vice president and general counsel of Merck, said
in a statement.

In November 2011, Merck agreed to pay $950 million to the
federal government and 43 states to settle allegations and claims
related to how it sold Vioxx. New Jersey was among the 43 states,
but Pennsylvania opted out.

Jim Donahue, Pennsylvania's acting executive deputy attorney
general for public protection, said Friday that part of the
rationale was that the joint federal-state settlement covered
Medicaid purchases of Vioxx but did not include those made under
the PACE program. Medicaid is the federal- and state-funded health
insurance program for low-income Americans.

With assistance from the Philadelphia firm of Cohen, Placitella
and Roth P.C., the commonwealth sued Merck and reached this
settlement.

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Contact David Sell at dsell@ phillynews.com or 215-854-4506.
Read his blog at www.philly.com/phillypharma and on Twitter
@phillypharma.